The British Pound's bounce against the Euro looks to be over with the gains seen in the first half of this week rolling over and giving way to a familiar trend of weakness which could extend below 1.09 over coming weeks, according to analysis from investment bank Crédit Agricole CIB.

The Pound-to-Euro rate could garner support on Monday or even find itself receiving a bid as the economy partially exits 'lockdown,' but a full sleight of fundamental risks may trouble the British currency as the week progresses.

The Pound-to-Euro rate limped into the weekend as the British currency slipped while Europe's unified unit broke to the upside from a stifling multi-month range although things could get ugly for Sterling if EUR/USD and GBP/USD continue to diverge from each other in the days and weeks ahead.

A fundamental shift in sentiment for the better towards the European Union has been reflected in a steady demand for euros over the course of the past two days, ensuring the single currency's outlook against peers such as the British Pound and U.S. Dollar has improved markedly.

The British Pound was one of the better performing major currencies on Tuesday amidst a broad based improvement in investor sentiment and rumours of a potential breakthrough in trade negations between the EU and the UK.

The Pound-to-Euro rate steadied last week but the technical outlook remains bearish on the charts and the fundamental pressure cooker that otherwise stains Sterling's prospects has gone into overdrive and threatens to produce big trouble in Little Britain during the days and weeks ahead.

The Pound-to-Euro rate recovered from earlier steep losses on Thursday but is in danger of unravelling again over the coming before falling to March lows in subsequent weeks if the EUR/USD rate continues to star and Sterling remains on its back foot against the Dollar.

The British Pound was seen under pressure against a resurgent Euro on Wednesday, courtesy of improving sentiment towards the Eurozone's single currency and developments in the UK's sovereign bond market that saw bond yields fall into negative territory.

Decisive steps towards a joined-up European response to the economic carnage wrought by the coronacrisis were made on Monday, resulting in improved investor sentiment towards European assets and the Euro exchange rate complex.

The Pound-to-Euro rate closed its worst week since the height of panic over the coronavirus on Friday but could attempt to stabilise in the coming days as it nears support on the charts, although analyst commentary suggests this will only be a short-lived period respite ahead another big leg lower.

The Pound-Euro rate is roadblocked on the charts and vulnerable to a correction over a multi-week horizon, technical analysts say, and this week will also be guided by the market response to the government's lockdown exit plan and official data that will reveal the cost of the coronavirus for the economy in the first quarter.